Who wants to be a landlord now?

[sunny88]

In my case 5 out of 23 asked for a reduction of rent and I granted them a 20% discount for 3 months. 4 tenants asked for rent deferment and 14 have been paying on time.

[sdrealtor]

How many in Sky ranch?

[pinkflamingo]

I have noticed that there seems to be more vacancies, e.g., more units listed for rent. And rental units are staying longer on the market.

We’ve had a tenant move out because they wanted a yard, but was able to get it rented. In that same community where normally very few rentals, there are now 5 units listed for rent.

Similarly in OC, the community we rented before we bought our house had 1 unit for rent 7 years ago, now has 15 units listed for rent. Some have sat there for 2 months.

In our current community we saw a house listed for rent and sat there for almost 6 weeks. Where as 2 years ago, it listed for the same price and was gone in a week.

Don’t know if Rich is reading, but I would love to have a graph of number of rentals units by month for this year.

[gzz]

Pink, there’s no central database for rentals.

Data on them is not reliable. Various sources on changes to local rents show different numbers, with one source saying, for example, +10%, another +3%, another -1%.

Using something like Zillow, you have to assume the percentage share of total rentals Zillow captures does not change over time. That assumption is probably wrong. Zillow used to scrape rental listings from other sites, I don’t know if that’s still the case.

Here’s some recent data on rents:

Rents Rising in Carlsbad, Encinitas, While National City Is Region’s Most Affordable

[sdrealtor]

Another issue is Zillow while the big player in rentals now was not only a few years ago. Any growth in listings is probably more to do with growing their business and market share than a change in the market

[sunny88]

[quote=sdrealtor]How many in Sky ranch?[/quote]

None. Most of them in Mira Mesa and Scripps Ranch.

[Coronita]

[quote=sunny88][quote=sdrealtor]How many in Sky ranch?[/quote]

None. Most of them in Mira Mesa and Scripps Ranch.[/quote]

Good for you. That’s awesome.

[pinkflamingo]

Zillow has been a reliable rental platform for the last 5 years at least. Zillow owns hotpads and trulia and has syndicated listings to these platforms and craigslist. Zillow has owned hotpads since 2012, and trulia since 2014. You can share your zillow listing on cl since 2011.

The recent jump in number of rentals in the last 6 months is probably not due to mass adoption of zillow imo. A range of factors include people wanting larger yards to weather the pandemic, job loses, being able to work remote until 2021, schools being virtual seem more likely.

The anecdotes I pointed out are not sfh. It may be the case that there are more demand for sfh. They are mainly condos and townhomes. With the exception of the sfh in our hood. That particular home may mean fewer families willing to rent expensive houses just to get into a good school district where only virtual school is available. My 2 cents.

I wonder how short term rentals are doin.

[pinkflamingo]

Turns out Zillow has historic rent data. Looking at the 3 areas over the last 8 months doesn’t seem to suggest a noticeable increase in total number of rentals. This leave me to think this phenomenon affects condos and town homes more so than sfh. Unfortunately, I can’t break the data down by type of housing.

[sdrealtor]

[quote=pinkflamingo]Zillow has been a reliable rental platform for the last 5 years at least. Zillow owns hotpads and trulia and has syndicated listings to these platforms and craigslist. Zillow has owned hotpads since 2012, and trulia since 2014. You can share your zillow listing on cl since 2011.

The recent jump in number of rentals in the last 6 months is probably not due to mass adoption of zillow imo. A range of factors include people wanting larger yards to weather the pandemic, job loses, being able to work remote until 2021, schools being virtual seem more likely.

The anecdotes I pointed out are not sfh. It may be the case that there are more demand for sfh. They are mainly condos and townhomes. With the exception of the sfh in our hood. That particular home may mean fewer families willing to rent expensive houses just to get into a good school district where only virtual school is available. My 2 cents.

I wonder how short term rentals are doin.[/quote]

Agree with all this. Was referring to longer term than that

[Escoguy]

Ok, so closed on the new home in 4S on 30th (Wed).

Rented out by Monday at $3900.

Tenant offered to pay full rent up front, told wasn’t necessary.

What I don’t get:

1. why some owners post their home materially below market
2. why some homes sit for days without movement despite many inquiries/applications.

Maybe we just move faster but my impression is that some leave a lot money on the table by not knowing the market and not responding quickly. Not really sure I should complain as maybe that makes my life easier.
Cheers.

[sdrealtor]

Not everyone is competent. Not everyone cares. Some people are just difficult. That should cover most of it

[gzz]

There’s a principal-agent issue with property management companies that lead to underpricing.

The management co prices $200 under market, gets a zillion applications, and chooses the tenant that seems to be zero trouble, or even corruptly chooses someone.

They only lose $10-20 a month from under pricing, but their workload might be 50% less than if the unit was priced at market.

[sdrealtor]

They also avoid churn which makes their job easier but does benefit the owner too

[scruffydog]

Does anybody notice that .gov is slowly trying to take away private property rights / negate rental contracts? Why does .gov give billions to big business for covid relief but almost nothing to landlords and then make it almost impossible to evict tenants? Rent control never made any sense to me; restricting return on private investment. If you bought Apple stock for $5 how would you like it if .gov mandated you could only sell it for $10 instead of $150?
Responses to my post are generally “So far I’m not affected so I don’t care”. I believe it will only get more difficult for rental property owners. I wouldn’t enter the rental business now.
Rents popped earlier this year in local areas I track. Looking at Zillow I have noticed recent sfr rent price reductions. Sales are still strong, very little inventory in 92124. Out of control in Canada – median up 54% in London On in 2 yrs. Toronto most overvalued in North America. Crazy times.

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